More Profitable than Google
What’s worse, is that fishing ministers want to start handing out fishing subsidies for building new boats and new engines that have been banned.
What’s amazing is they want to hand out taxpayers’ cash to an industry that is profitable. Net profitability is 16.9%. Its been going up and up for a number of years.
Some countries did better than others. Lithuania’s fleet is making a loss. Romania, Slovenia and Denmark’s fleets are doing very well. Profitability varies. The large-scale fleet generated the highest net profit margin (17.4%), followed by the distant water fleet (16.6%) and then the small-scale coastal fleet (12.3%).
As with any industry, profits vary between countries and the size of operators.
To put that in perspective. Alphabet’s net profit rates are similar at 17.9%
Time to bring back the failed subsidies
Despite the industry being in the main profitable, and at good levels of profitability, fishing ministers want to re-introduce subsidies that have been tried and failed.
In June 2019 fishing ministers backed subsidies for ‘the construction and acquisition of fishing vessels or the importation of fishing vessels, as well as the replacement or modernisation of engines be eligible for vessels up to 24 metres,’
90% + of the Fleet Eligible
This is opening over 90% of the EU fishing fleet to subsidies. A review of the EU fleet registry – link — shows that around 96% of the EU fleet is under 24 metres and will be able to apply (link).
I am curious what held fishing ministers back from handing out taxpayers’ money to the industrial and distant water fleet.
The text only got this far because the UK’s empty chair meant there was no blocking minority.
What Will the Green Deal Commission Do?
I am curious. Will the new Commission have the courage to withdraw the EMFF proposal from the table and not be shackled by the legacy and proposals of the old Commission. Or, will they turn a blind eye? If they refuse to stand to up to Fisheries Ministers, there is little hope for the Green Deal’s Climate agenda ever getting through intact.
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I suppose it remains the same old problem of too many boats chasing too few fish. Especially if those that are left are escaping north for colder waters.
Perhaps Ursula and her colleagues will consider extending the Transition Fund to scrap fishing boats and find new livelihoods for fishing communities?